2. FINANCIAL HIGHLIGHTS
L-3 TODAY
(In millions, except per share amounts)
Sixth-largest defense contractor in the United States
2002(a) 2001(a)
2005
For the year ended December 31, 2004 2003
Prime contractor in command, control and communications, intelligence, surveillance and reconnaissance (C 3ISR),
Simulation and Training, Aircraft Modernization and Maintenance and Government Services
$9,444.7 $6,897.0 $5,061.6 $4,011.2 $2,347.4
Sales
Ranked third top-performing large company in airlines, aerospace and defense by Aviation Week and Space Technology Operating income 996.7 748.6 581.0 454.0 275.3
Income before cumulative effect of a
277.6 (d) 202.5 (d)(e)
381.9 (d)
508.5 115.5
change in accounting principle
Ranked largest defense contractor in Canada by Canadian Defence Review
Diluted earnings per share before
cumulative effect of a change
3.33 (d) 2.62 (d) 2.13 (d)(e)
Major provider of secure communications and information security products for the delivery of networked digital data in accounting principle (b) 4.20 1.47
846.8 620.7 456.1 318.5 173.0
Net cash from operating activities
to the warfighter
116.7 68.6 79.1 58.5 46.9
Capital expenditures, net of dispositions
Free cash flow(c)
Leader in aircraft displays, avionics, electro-optical (EO) sensors, satellite communications systems, stabilized weapons 797.5 552.1 377.0 260.0 126.1
Shareholders’ equity 4,490.7 3,799.8 2,574.5 2,202.2 1,213.9
and sensors
Largest provider of training systems for tactical fixed- and rotary-wing aircraft, marksmanship and driving systems
as well as information technology and computer-based training
(a) In accordance with Financial Accounting Standards Board (FASB) Statement of Financial Accounting Standards No. 142,
3
Leader in law enforcement, leadership training and C systems for civil and public safety organizations Goodwill and Other Intangible Assets, effective January 1, 2002, we ceased amortizing goodwill.
(b) Diluted earnings per share for all periods reflects our two-for-one stock split effective May 20, 2002.
(c) We define free cash flow as net cash from operating activities, less capital expenditures, net of dispositions.
Leading provider of aircraft modernization and support for military and training aircraft and helicopters both domestically
For the year ended December 31, 2005, free cash flow excludes payments of $67.4 million to settle Titan shareholder
and internationally class action and derivative action lawsuits, which were assumed by L-3 as part of the Titan acquisition.
(d) Includes debt retirement charge of $3.2 million after taxes, or $0.03 per diluted share in 2004, $7.2 million after taxes,
Major provider of shipboard and submarine power systems, as well as bridge and control systems for military and or $0.06 per diluted share in 2003 and $9.9 million after taxes, or $0.09 per diluted share in 2002.
(e) The year ended December 31, 2002 excludes the cumulative effect of a change in accounting principle for a goodwill
commercial ships
impairment of $24.4 million or $0.23 per diluted share.
International leader in airborne anti-submarine warfare (ASW)
Major contributor to key future programs, such as DD(X), MMA, FCA, MHP, Combat Search and Rescue-X (CSAR-X),
SALES OPERATING INCOME FREE CASH FLOW
WIN-T, FAB-T, LHA-R and the F-22 996.7 797.5
9,444.7
Major provider of homeland defense products and services, particularly in the areas of aviation, port, maritime and border 748.6 %
%
% 8.6
7.9
1.6 552.1
6,897.0
R3 R5
R4
CAG CAG
AG
security, law enforcement, first responder equipment vehicles and crisis management 581.0
C
5,061.6 377.0
454.0
4,011.2
260.0
$275.3
$2,347.4
$126.1
THE BEST IS AHEAD
2001 2002 2003 2004 2005 2001 2002 2003 2004 2005
2001 2002 2003 2004 2005
This Summary Annual Report should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2005.
1
3. officials at every level to review their crisis management
Dear Shareholders:
and preparedness protocols. As a result, there has been a
LETTER TO SHAREHOLDERS strong interest in L-3’s crisis management products, com-
L-3 Communications had a remarkable year in 2005 –
mand and control (C2) vehicles and persistent surveillance
exceeding its financial goals, broadening and strengthen-
systems. The continuing threat of terrorism worldwide has
ing its capabilities with new products and services, increas-
also caused numerous countries in Europe, Asia and the
ing its synergies and growth from acquisitions and adding
Middle East to request L-3’s aviation, cargo, port and trans-
new key defense, government agency and homeland secu-
portation security products along with intrusion detection
rity customers. In fact, L-3 has become the sixth-largest
systems.
defense company in the United States and is now the
largest defense company in Canada. In the past year, L-3
also expanded its international presence with key strategic
Strong Financial Results
acquisitions in the United Kingdom (UK) and Germany.
By all financial measures, L-3 had a strong 2005. Sales
One of L-3’s most significant roles in 2005 was the contin-
increased to $9,444.7 million from $6,897.0 million
ued support of US forces in Iraq and Afghanistan. With
in 2004, a 36.9% increase. Organic sales growth in
the addition of the Titan acquisition and its workforce, L-3
2005 for L-3’s defense businesses increased by 11.7%.
had several thousand employees aiding US and allied
Operating income in 2005 increased by 33.1% to $996.7
forces in-theater, with many thousands more in the US and
million, compared to $748.6 million. Diluted earnings per
abroad providing support to our military.
share for 2005 rose 26.1% to $4.20, from $3.33 in 2004.
In 2005, L-3 continued to expand its portfolio of products
In 2005, L-3 generated $846.8 million of net cash from
and services to meet the US Department of Defense’s (DoD)
operating activities, compared to $620.7 million in 2004,
strategy of transformation to respond to new geopolitical
an increase of 36.4%. Free cash flow for 2005 was
realities. To handle both conventional and irregular
$797.5 million, compared to $552.1 million in 2004, an
threats, the US military will be transformed into a joint,
increase of 44.4%, and L-3 concluded the year with
mobile, high-technology force, capable of defending the
$393.9 million of cash on hand.
US against terrorism and responding to natural disasters.
In addition, legacy platforms will continue to be modern-
L-3 recorded $10,365.4 million in funded orders, reflect-
ized and organizational changes will be optimized to
ing strong results in all business segments. Funded back-
address post-Cold War global enemies and new battle-
log was $7,000.9 million at December 31, 2005.
fields. Technology, seamless communications and intelli-
gence-gathering will be vital to the execution of precision
At the close of 2005, L-3 continued to have a very strong
engagement in both conventional and irregular warfare.
balance sheet, even as the company made the largest
acquisition in its history – Titan. The company’s debt-to-
The DoD requirements include a major emphasis on joint
book capitalization was 50.3% at December 31, 2005,
command, control, communications and intelligence (C3I);
compared to 36.1% in 2004.
Light and Special Operations Forces (SOF); mobility; preci-
sion weaponry; sea combatants; unmanned air, land and
sea sensors; and weapons and logistics. Other areas of
Strategic Acquisitions
focus are stability operations, including those in “fragile
states,” post-conflict reconstruction, urban warfare, simula-
L-3 has been very disciplined in its selection of acquisitions
tors and simulations, propulsion and leap-ahead non-lethal
– filling in important niches in its broad base of products
technologies. All of these are areas where L-3 has a signif-
and services.
icant presence and where the company is making strategic
acquisitions to strengthen and expand its offerings.
In the command, control and communications, intelligence,
surveillance and reconnaissance (C3ISR) reportable seg-
Frank C. Lanza The US also experienced two devastating Gulf Coast hurri-
Chairman and Chief Executive Officer ment, L-3 acquired Applied Signal and Image Technology
canes in 2005 and L-3 lent its products and capabilities to
(ASIT), a leader in communications intelligence (COMINT)
military, federal and local government officials for rescue
and signals intelligence (SIGINT) processing for programs
and relief operations. These natural disasters have caused
2 3
4. In 2005, L-3 formed a strategic joint venture (JV), named Additionally, the US Navy’s Littoral Combat Ship (LCS) will
There is an emerging market for electro-optical/infrared
Letter to Shareholders - continued Global Military Aircraft Systems (GMAS), with Italy’s focus on roll-on mission modules, which will provide anoth-
(EO/IR) imaging, surveillance and targeting sensors and
Alenia Aeronautica, a Finmeccanica company, that will er opportunity for L-3 to offer its equipment and capabili-
lasers used for law enforcement, military and homeland
such as Predator and Big Safari and offering growth
compete in 2006 for missionizing the production and sup- ties without the impact of a major cost and schedule modi-
security. L-3 has become a leader in this area, and in
opportunities in the small payload unmanned aerial vehicle
port of the C-27J military transport aircraft proposed for fication to the present surface combatant. These initiatives
2005, the company added Sonoma Design Group, offer-
(UAV) market as well as in business jets. This company
the US Army and US Air Force joint Future Cargo Aircraft/ will stimulate competition between companies, as opposed
ing high-end stabilized EO/IR gimbals and cameras for
has been added to L-3’s Integrated Systems Group.
Light Cargo Aircraft (FCA/LCA) program. If the JV wins to a single prime contractor having total responsibility.
airborne and surface platforms. This expanded our prod-
the FCA/LCA, it would provide the Army with the only mili- UAV units will be expanded and unmanned land and sea
uct base and complemented our WESCAM, Cincinnati
Titan was an important acquisition for L-3 – its high-end
tarized intra-theater lift capability platform and replace the vehicle missions will increase, eliminating high-risk manned
Electronics and other EO/IR divisions, which provide prod-
capabilities and its skilled technical workforce provide
aging Sherpa aircraft currently used in Iraq. The platforms. Increased use of precision weapons, artillery,
ucts to the military, United States Coast Guard, customs,
complementary services, systems and products for C3ISR,
FCA/LCA will provide a last-mile theater supply chain to motors and a heavy emphasis on communication and intel-
law enforcement and international customers. Also
enterprise information technology (IT) and homeland securi-
connect with the long-haul C-5, C-17 and C-130 air mobili- ligence consolidation will also be implemented. Future
acquired was EOTech, a leader in advanced holographic
ty programs.
ty provided by the Air Force, which will reduce the stress forces will require advanced sensors for navigation of
weapon sights that improve marksmanship for target acqui-
unmanned platforms, networked ISR, C2 on the battlefield
on the CH-47 helicopter lift.
sition systems. With these additions, L-3 provides EO com-
The majority of Titan’s assets are included in the L-3 Titan
and a major expansion of roles and missions of the SOF.
ponents, including cooled and uncooled semiconductors,
Group led by Group President and Chief Operating
chips, cameras and optics and laser sources, as well as
Officer (COO) Tony Frederickson. The Intelligence
Vertical integration is a challenge that L-3 and other mid-
total EO/IR laser-stabilized sensor systems now used on
Solutions and Technical and Management Services divi-
The QDR and the Defense Budget tier suppliers face. Defense prime contractors have
sions are part of the C3ISR reportable segment, comple- hundreds of civilian and military platforms and missile sys-
become Lead System Integration (LSI) contractors, going
tems worldwide.
menting L-3’s existing businesses and greatly expanding In the Quadrennial Defense Review (QDR), which was
beyond systems integration work and providing products
the company’s role in the growing C3I market. released on February 6, 2006, the Pentagon identified its
internally, rather than bidding them out to merchant suppli-
strategy to fight the war on terrorism, prepare for irregular
ers and specialized defense contractors. Historically, these
The remaining Titan Group divisions are part of L-3’s
Expanding L-3’s International Presence and asymmetrical conflicts, counter nuclear, biological and
defense product suppliers have been the source of innova-
Government Services reportable segment. These include
chemical weapons and strengthen homeland defense. The
tion for the DoD and provided state-of-the-art and cost-effec-
the Aviation & Maritime Services division, providing support
QDR also reaffirmed the military’s strategy of reorienting
In 2005, L-3 focused on expanding its international busi- tive offerings. The Pentagon is aware of the flaws in the
for maritime and expeditionary warfare; and the Enterprise
capabilities and creating agile forces, while modernizing
ness. One major step was the opening of an office in the LSI acquisition strategy and its impact on suppliers and has
IT Solutions division, offering conventional high-end infor-
established platforms. The QDR focus is on capabilities,
UK to reinforce L-3’s relationship with the Ministry of taken a number of steps to retain greater control of the
mation technology support to US federal agencies and the
not platforms. It includes acquisition reform, as well as
Defence (MOD) and to explore additional synergistic com- process. Some key steps are reaffirming the DoD policy of
DoD. Mr. Frederickson, along with Government Services
horizontal integration of military capabilities and minimal
binations in the international arena. In January 2006, L-3 opening the bidding process and implementing oversight
Group President and COO General (Retired) Carl Vuono,
stovepipe capabilities.
made its first acquisition in the UK, a products company to ensure companies can participate in more contract
manage L-3’s Government Services reportable segment.
that offers multi-sensor fusion and tracking systems for opportunities.
In conjunction with the QDR, President Bush proposed a
The Titan businesses that were product-oriented were incor- cruise and ballistic missiles and military aircraft, as well as
record $439.3 billion US defense budget for 2007. This
porated into the Specialized Products reportable segment. digital communications switches for many markets. L-3
represented a 7% increase in military spending, which did
With important new products for SIGINT, such as the also forged a partnership with Qinetiq, a UK-based firm,
not include funds to support the wars in Afghanistan and Iraq.
Prospects for 2006 and Beyond
Prophet Land System, communications-on-the-move (COTM) to develop technology for MOD ISR programs.
SATCOM terminals, Long Gun UAVs, video products, naval Major initiatives include a 15% increase in SOF personnel,
Another international milestone for L-3 in the Power and
shipboard systems and sophisticated modems, these busi- We project L-3’s prospects to be excellent in 2006 with
increased use of unmanned platforms for ISR missions and
Control Systems business was the January 2006 acquisi-
nesses continue to expand our product offerings in a vari- both top- and bottom-line as well as organic growth. Once
improved coordination with state and local governments
tion of a German company – SAM Electronics. This com-
ety of markets. again, the highest growth areas in the DoD budget are in
through enhanced communications and command systems.
pany adds a new commercial shipboard market opportuni- the defense electronics segment – an area where L-3 has
L-3 continues to provide critical products and services in
L-3 also made a number of key additions to its Specialized ty to L-3 and also gives the company access to emerging leadership. Our sales projection is mainly backlog and fol-
key growth areas, including ISR, unmanned missions, preci-
Products reportable segment. L-3 added a Canada-based Asian commercial and military markets. The commercial low-on driven. Numerous opportunities exist on new pro-
sion engagement, EO/IR sensors and persistent surveil-
marine controls business, now known as L-3 Communications market launches over 1,000 ships per year and the mili- grams and L-3 is well-positioned on the key material nation-
lance and electric drives.
Marine Automation and Power Plant Simulation (MAPPS), tary is relying heavily on commercial products for new al programs that remain unaffected by platform issues.
a global provider of integrated marine control systems for ships. With a customer base that is 75% commercial ves- Transformation includes the US Army’s new brigade com- This includes Network-Centric communications and ISR, air-
warships, submarines and high-end ocean-going commer- sels and cruise ships, SAM is a perfect addition for this bat teams (BCTs), which allow for a more rapid insertion of craft modernization and support, training and simulation
cial vessels. The company also acquired a business for the new paradigm. This division expands our Power and new products and technologies to achieve the desired and government services. In 2006, L-3 will continue to
growing homeland security and public safety markets – Control Systems Group, led by President and COO Steve capabilities balance. In that regard, L-3 offers a myriad of seek acquisitions in areas that strategically strengthen and
Mobile-Vision, a leading supplier of in-vehicle video surveil- Kantor, and opens up opportunities in both commercial and products to make BCT units more agile, lethal and interop- expand the company’s capabilities. We will also strength-
lance and recording systems used for law enforcement. international markets. erable.
4 5
5. (DHS) Eagle services contract, as well as border security
Letter to Shareholders - continued and many opportunities in the intelligence sector.
en and continue to lead the consolidation of the fragment-
NEW PRODUCTS
One of the elements of L-3’s success from the very begin-
ed supplier base in order to play a significant role in future
ning has been the relentless focus on good program per-
homeland security requirements. These acquisitions in spe-
formance. It is one of the factors behind L-3’s high win
cialty products will occur in 2006.
ROVER III MANPACK RECEIVER BAI OVERHEAD IMAGERY POD
and sole source award rates. We believe that by achiev-
ing solid organic growth, good program performance and
We also believe that a significant number of US troops will
by adding new acquisition gems to our portfolio, L-3 can
return from Iraq in 2006 and that will initiate an invest-
continue to deliver strong growth. We will achieve 20%
ment in equipment recapitalization. L-3 is ready to supply
top- and bottom-line growth in 2006 – 8% to 10% through
a wide array of systems, products and services for modern-
organic growth and the remaining through acquisitions.
ization and for maintenance of equipment. As US troops
withdraw from Afghanistan and Iraq, we believe that the
In the future, L-3 will be a much larger company – with pro-
international demand for L-3’s leadership and security train- As a result of customer feedback received during Hurricane Katrina relief
Named L-3’s product of the year, the ROVER III, manufactured by L-3
jected revenues approaching $12 billion. Though the
ing for emerging democracies will continue to grow. activities, L-3 BAI Aerosystems introduced a ROVER III-compatible stand-
Communication Systems-West, has played an instrumental role in the war
acquisition pipeline remains very strong, most of those alone overhead imagery pod. The pod combines steerable EO/IR cameras, a
in Iraq. With over 700 units in the field, ROVER III gives the warfighter the
L-3 is a prime contractor on the International Criminal
companies are in the range of $50 to $300 million in camera controller and a video transmitter into a single integrated unit to aid
ability to “see” all targets before launching a weapon strike, reducing
Investigative Training Assistance Program (ICITAP) for law
annual revenues, so it is unrealistic to be able to match the in search and rescue and other emerging applications.
collateral damage. It also provides communications interoperability with
enforcement advisors and trainers around the world.
almost 40% annual sales growth of previous years. We over 15 different manned and unmanned sensor platforms.
ICITAP currently has teams in 35 countries. L-3 also works
believe that L-3 can continue to be a solid growth company
TARGET ORIENTED TRACKING SYSTEM (TOTS ) WRIST ATTACHED VIDEO EQUIPMENT (WAVE)
in conjunction with the US Department of State in provid-
in 2007 and beyond.
ing public and private sector institutions with training, edu-
cation and leadership developmental services in the US
Our confidence comes from a number of factors. First,
and internationally.
there are good companies still available in the defense
arena that could build upon our systems, services and
In homeland security, we believe that with the threat of nat-
products businesses, which will enable us to get a larger
ural disasters and terrorism in the US and in other coun-
share of the DoD, DHS and agency budgets. Second, we
tries, government authorities are increasing their focus on
have an entire generation of new state-of-the-art products to TOTS from L-3 ASA is a scalable, single-stage, multi-hypothesis fusion In cooperation with the US Air Force, L-3 Display Systems is developing sec-
preparing for potential catastrophes. Crisis management,
aid in the modernization of existing platforms and to funnel tracking engine that uses a powerful Autonomous Multiple Model (AMM) ond-generation wearable wrist displays that give soldiers and forward com-
aviation, maritime, mass transportation, port and cargo
into new assets that will come on line. architecture. Developed by L-3 ASA's engineers to meet the demanding real- bat controllers immediate access to real-time data and video. The WAVE
security, intrusion detection and bioterrorism detection C2 time sensor data fusion and tracking requirements of the Strategic Defense device allows viewing of UAV-transmitted video and works in conjunction
vehicles are the kinds of products and services that are of Initiative (SDI) threat scenarios, today's generic TOTS system delivers with ROVER III. Future versions of the device will incorporate GPS mapping
Third, our employees remain our most important competi-
interest to domestic and international governments. unparalleled precision, continuity and low latency, and simultaneously software, a digital camera and other essential communication features.
tive advantage. We have brought together a strong man-
tracks different types of targets with both active and/or passive sensors.
agement team dedicated to driving growth and executing L-3 acquired ASA in January 2006.
Organic growth continues to be a major priority for L-3.
a disciplined acquisition strategy, a unique set of science
In 2006 and beyond, this growth will come from a long list
NEXT GENERATION TRAINER (NGT) GUNNER CREW CHIEF STATION (GCCS)
and engineering talent and hardworking, conscientious
of new products from each of our segments – ranging from
employees who prosper in our entrepreneurial culture and
electronic CTs; mine-hunting equipment; binary ionization
provide so much value to our customers. For these and
technology for target simulation; LITES signals intelligence;
many other reasons, L-3 is poised to continue its remark-
the new “pack and fly” small UAV; the ENTR tactical intelli-
able history well into the future.
gence receiver; EO/IR lasers and sensors; SIGINT subsys-
tems; FAB-T; next-generation secure data links; COTM
antennas; the Prophet system; checkpoint security; electric
propulsion and many, many more. L-3 will also bid strate- L-3 Link Simulation and Training developed the GCCS, a new simulation
L-3 Link Simulation and Training has developed a prototype of its NGT,
gically on important upcoming programs, such as the US product that can be integrated with rotary-wing flight simulators to enhance
which incorporates distributed, networked and web-enabled technologies to
warfighter effectiveness. Designed to improve helicopter gunnery crew train-
support the US military’s growing need “to train where you are, train on
Army’s Linguist program recompetition, MMA, CSAR, LUH,
ing skills, the GCCS replicates the aircraft interior and provides soldiers with
demand.” Link’s NGT provides high-fidelity simulation of physical environ-
Frank C. Lanza
the C-27 Common Theatre Lift Aircraft (the UK Nimrod
the correct visual or virtual representation on a helmet-mounted display sys-
ments, as well as replication of realistic human behaviors. These technolo-
Chairman and Chief Executive Officer
replacement) and the Department of Homeland Security’s
tem. The GCCS can easily be reconfigured to replicate either the UH-60 or
gies are planned for use on the US Army’s Aviation Combined Arms Tactical
the CH-47 aircraft gunner stations.
Trainer (AVCATT) and the US Air Force’s Predator Mission Aircrew Training
System (PMATS) programs.
6 7
6. NEW PRODUCTS NEW PRODUCTS
VT2 CONVOY TRAINER LASER MARKSMANSHIP TRAINING SYSTEM (LMTS) PROPHET
SEA FIGHTER
390 SERIES VERSION 5
The L-3 MPRI VT2 convoy training system provides powerful and flexible L-3 MPRI’s LMTS 390 Series uses an interactive video training simulator On February 5, 2005, the US Navy christened X-Craft as Sea Fighter (FSF 1). L-3 Linkabit’s Prophet mobile ground-based tactical signals intelligence sys-
that provides judgmental scenarios, full-size target engagement and interac- Sea Fighter, developed by L-3 Advanced Systems, is a high-speed, experimen- tem was developed as a US Army transformational program to replace lega-
tools needed to prepare soldiers for the challenges found on the modern bat-
tive skill-building exercises. Users train with their own weapon, and the sys- tal vessel that will test a variety of technologies for the operational develop- cy systems. Currently deployed in Iraq and Afghanistan, Prophet is providing
tlefield. This system allows them to plan, rehearse, execute and evaluate
tem’s advanced “analyze” feature allows for an in-depth review of marks- ment of the US Navy’s Littoral Combat Ship (LCS) and the US Coast Guard’s electronic situational information to tactical commanders who may not have
training in a high-fidelity, interactive, geo-specific virtual environment.
manship skills. Deepwater program. The Sea Fighter’s Vistar 350 Sensor Suite electro-opti- access to strategic surveillance resources.
cal system is outfitted with L-3 CE’s NightConqueror IR Thermal Imager.
HOLOGRAPHIC WEAPONS SIGHT (HWS) MX-15 24/7 EO
FLASHBACK CYCLEVISION™ SAFEROUTE™
L-3 EOTech, Inc. is the manufacturer of the world’s only holographic sighting In 2005, L-3 WESCAM integrated a dual-channel spotter camera, capable of
system for small arms platforms and machine gun systems. This revolution- both daylight and low-light long-range identification, into its MX-15 EO/IR
With its rugged, reliable, solid-state memory, Flashback CycleVisionTM gives In June 2005, ACSS announced the development of SafeRouteTM, a suite of
ary weapon optic delivers rapid target acquisition and significant accuracy system, resulting in a six-sensor payload within a stabilized turret. In addi-
gains in close combat situations without compromising the soldier’s periphe- tion to the Night Spotter’s low-light capabilities, WESCAM augmented a motorcycle patrol units the unprecedented ability to digitally record video automatic dependent surveillance-broadcast software solutions designed to
evidence. Based on L-3 Mobile-Vision’s proven FlashbackTM Digital Video
ral vision. laser illuminator for a true 24/7 persistent EO imaging solution. By match- improve safety and efficiency for flight operators in flight and in airport
ing the Night Spotter’s field of view, the entire image area is illuminated – Recorder (DVR), CycleVision includes an externally mounted camera and environments. In addition to providing critical situational awareness,
even in total darkness – providing another industry first. monitor console that are weatherproof and capable of withstanding SafeRoute enables users to reduce fuel consumption.
extremes in temperature and humidity as well as direct sunlight.
ELECTRONIC CAB SYSTEM (ECS) FOR THE LOGISTICS
SONOMA EO PRODUCTS THERMAL-EYE X200xp TALON
VEHICLE SYSTEM REPLACEMENT (LVSR)
In 2005, L-3 Infrared Products (L-3 IP) launched the next generation of
L-3 Sonoma EO provides advanced EO/IR stabilized turrets to the expanding
surveillance market. Sonoma’s key products include the Sonoma 333TM, a hand-held thermal imaging cameras, the Thermal-Eye X200xp. With its prede- In 2005, L-3 Ruggedized Command and Control Solutions (L-3 RCCS) pio- In 2006, L-3 Communication Systems-East will introduce Talon, a small form
cessor fielded in Iraq and Afghanistan, this pocket-sized camera meets the
12-inch stabilized turret for low-altitude manned and Unmanned Aircraft neered a new graphics display technology with the ECS for the LVSR initia- factor PCMCIA encryptor ideal for the mobile warfighter. By inserting Talon
Systems (UAS) and the Sonoma 474TM, a high-resolution, long stand-off tough demands of military, federal and local law enforcement users every tive, a heavy 10x10 off-road tactical vehicle. The ECS, which includes a into the standard PCI slot of a laptop, DoD users will be able to access and
day. In 2006, L-3 IP will launch the Thermal-Eye 4500AS, a 320x240 high-
solution selected for passive detection of Improvised Explosive Devices ruggedized computer, displays and software, presents real-time vehicle data share top secret data. Talon is the first solution designed to be interoperable
er resolution camera core based on the same technology as the current AS
(IEDs). L-3 Sonoma EO plans growth into mine-countermine missions, mar- and accesses the onboard camera suite. Suitable to many new platforms with existing secure communications via SCIP and HAIPIS protocols.
line.
itime surveillance and high-altitude UAS and manned platforms. and easy to modify, the ECS represents a landmark advance in driver infor-
mation display capability.
8 9
7. NEW PRODUCTS NEW PRODUCTS
HAYSTACK RADIO TELESCOPE COMMUNICATIONS-ON-THE-MOVE (COTM) ANTENNA WANKEL ELECTRONICALLY CONTROLLED ACTIVE SUSPENSION
SYSTEM (ECASS)
L-3 Datron Advanced Technologies has developed a COTM antenna system
L-3 ESSCO, in conjunction with Massachusetts Institute of Technology’s
L-3 Combat Propulsion Systems has acquired the worldwide technology
designed to support Ku- or Ka-band satellite communications for ground
Lincoln Laboratory, will design, fabricate and install a series of sophisticated
rights to develop and manufacture a new revolutionary rotary engine tech- During 2005, L-3 Electronic Systems (L-3 ES) globally launched its ECASS
mobile applications such as Humvees, Strykers or Bradley fighting vehicles.
technology upgrades to the 37-meter diameter Haystack Radio Telescope.
nology. The high-power density rotary diesel engine is being developed as technology, which will initially be installed and tested on a Swedish tactical
The COTM antenna system features an extremely rugged design and low
These improvements will extend the operating frequency range of the
a candidate engine for Class II-IV UAVs and Advanced Ground Vehicles, as vehicle. ECASS is a fully active, computer-controlled vehicle mobility
weight and power consumption. Interchangeable Ku- and Ka-band RF/feed
antenna to 90-100 GHz.
well as Auxiliary Power Units. enhancement system suitable for a wide range of vehicle applications.
assemblies are provided to allow the operator to use DoD or commercial
A Humvee version of ECASS is under development for release in 2006.
satellite assets.
X-BAND PULSE MODE MICROWAVE POWER MODULE TCS, INC. MODULAR TACTICAL COMINT
NAVAL BRIDGE SYSTEMS
(MPM)
L-3 TCS, Inc. provides engineering, logistics, hardware/software design, L-3 Applied Signal and Image Technology (L-3 ASIT) offers the latest in a
L-3 Henschel’s Multi-Function Control Consoles or universal workstations are
integration, modification, test, documentation and sustaining support to the series of low-cost, high-performance signals surveillance payloads. The new
designed for use in command, control, communications and combat manage-
L-3 Electron Devices has extended the performance benefits of its MPM
US Air Force SOF/Combat Search and Rescue (CSAR) and C-130 communi- system is designed for easy installation in a standard Caravan baggage pod
ment systems to ensure reliability in the harsh environments of mission-criti-
with the recent development of the X-band Pulse Mode MPM. By providing
ties. L-3 acquired TCS, Inc. in January 2006. and is ideal for quick-reaction needs.
cal operations. The consoles are flexible in application, design and technolo-
high efficiency in a small, lightweight package, this MPM is ideal for
gy and offer a wide range of advanced features not available in legacy
powering the new generation of small UAV persistent surveillance radars.
consoles.
VIDEOSCOUT™
SAM ELECTRONICS ADVANCED LASER SYSTEMS TECHNOLOGY (ALST)
AFFORDABLE WEAPON SYSTEM (AWS)
L-3 Advanced Products & Design’s VideoScoutTM is a video management and
L-3 ALST is a leading supplier of laser rangefinders used in sensor systems
The AWS is a low-cost guided missile system that uses military and
SAM Electronics’ automation, navigation, communication, energy distribu-
mounted in airborne fixed- and rotary-wing aircraft and UAVs, naval surface exploitation system that helps personnel create and share intelligent video
commercial-off-the-shelf (COTS) components. Launched from various
tion and propulsion systems meet the stringent demands of its customers
ships and submarines and hand-held thermal imagers, as well as orbital from sources such as EO/IR sensors and UAVs to improve situational aware-
platforms by a small rocket booster, the AWS is designed to carry a
worldwide. In June 2005, SAM completed a major turnkey project for Pride
space vehicles. The designs developed by L-3 ALST have surpassed industry ness and decision-making in real time. VideoScout is combat proven, having
200-pound payload to a target several hundred miles away. The missile is
of America, the new 81,000 gross ton cruise liner for Norwegian Cruise
standards for compact size, ruggedness and performance at a low cost. been deployed to Iraq by the US SOF and the USMC Marine Expeditionary
equipped with both line-of-sight and satellite data links, enabling it to fly
Line. The contract involved extensive project management and engineering
During 2006, the company will introduce an ultra-compact laser designa- Force (MEF) to provide ISR support during operations. When coupled with
directly to its target guided by GPS or fly to an area and loiter for hours
as well as responsibility for complete cabling and installation of all electri-
tor/rangefinder optimized for use in small UAVs and man-portable systems. the L-3 ROVER III receiver, VideoScout provides constant access to live
until a forward observer directs the weapon to a target.
cal systems. L-3 acquired SAM Electronics GmbH in January 2006.
video, addressing the specific needs of the warfighter anywhere in theater.
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8. USAF Modified Aircraft During Takeoff Evolution XTS
C3ISR
ISR Systems
USAF Aircraft
L-3's capabilities range from products and major subsystems to prime ISR platforms, including secure communications systems, data
links and command and control, network communications, remote sensors and encryption.
USAF Aircraft
IS-Supported Aircraft
Viking 400
Ski Bird LC-130
US Air Force Mission Support International Surveillance Systems
L
L
-3 IS performs upgrades of missions and navigation
-3 Integrated Systems (L-3 IS) provides comprehensive
equipment to the Royal New Zealand Air Force’s P-3
development, modification and logistics support to sev-
Orion maritime patrol aircraft. This reconnaissance air-
eral key intelligence platforms in the US Air Force fleet.
craft will be upgraded with L-3 WESCAM’s MX-20 imag-
Within the Big Safari family of programs, L-3 supports
Republic of Korea P-3
ing turret system, featuring video capabilities and an
the Rivet Joint, Cobra Ball and Combat Sent programs,
infrared camera. L-3 IS also provides system moderniza-
each a specialized version of the RC-135 platform with
tion and service life extension on the P-3 Orion for the
strategic and tactical airborne reconnaissance
Republic of Korea (ROK), and will maintain Korea’s air-
capabilities.
borne signals intelligence system.
L-3 IS also provides comprehensive support to the
In 2005, the UK MOD selected L-3 IS for an 18-month
EC-130H Compass Call fleet, which disrupts enemy com- New Zealand P-3
contract to conduct Stage 2 architecture studies for
mand, control and communications (C3) and hinders
Project Helix, a multi-stage program to develop an
adversary coordination essential for enemy force man-
advanced mission suite for the electronic reconnaissance
agement. In addition, L-3’s Titan Group provides engi-
system for the Royal Air Force’s Nimrod R1 aircraft.
neering and C2 integration support to the US Air Force's
Airborne Warning and Control System (AWACS) and test
In addition, L-3 BAI Aerosystems (L-3 BAI) UAV systems
and evaluation support for the Joint Surveillance Target
and personnel performed critical intelligence-gathering
Attack Radar System (JSTARS) aircraft. Aircraft Interior
missions in support of Operation Iraqi Freedom. L-3 BAI
made its entry into the tactical UAV market by introdu-
cing its largest unmanned aircraft to date, the Viking 400.
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9. Phoenix SATCOM Terminal
C3ISR
Secure Communications
MarCom
Phoenix Quad-Band Terminal
MP-CDL
ALL-S/TAR Recorder
Information Assurance
Networked Communications
L
L
-3 products ensure the secure transmission of informa-
-3 has emerged as a prime contractor for ISR, develop-
SME-PED
NCCT
tion for the DoD and US Government agencies. L-3
ing secure data links and signals intelligence (SIGINT)
Communication Systems-East’s (L-3 CS-East) suite of data
and communications intelligence (COMINT) systems used
storage systems, which includes its Strategic/Tactical
on a variety of platforms, including UAVs, ships and
Airborne Recorder (S/TARTM), will be integrated into the
ground vehicles, for real-time transfer of data to the
P-8A Multi-Mission Maritime Aircraft (MMA), the US
warfighter.
Navy’s next-generation maritime patrol aircraft. In addi-
tion, L-3’s MarCom Integrated Voice Communication
L-3 Communication Systems-West (L-3 CS-West) has deve-
LPD-17
System (IVCS) became operational aboard the USS San
loped the first IPv4 networked wideband backbone com-
Antonio LPD-17, a vessel critical in maintaining maritime
munications suite – the Multi-Platform Common Data Link
dominance in the littoral battlespace.
(MP-CDL), which provides line-of-sight and air-to-air com-
munications modes for the US Air Force. In addition, L-3
Extending L-3’s space-based cryptographic products to
CS-West’s Phoenix is the first fully certified 2.4-meter
new areas, L-3 CS-East will design and develop a
Quad-Band Terminal in US Army history and is perform-
TRANSEC COMSEC Unit (TCU) for the Mobile User
MMA
ing successfully in Afghanistan, Iraq and Korea.
Objective System (MUOS), the US Navy’s next-genera-
tion narrowband tactical satellite communications system.
L-3 ComCept's Network-Centric Collaborative Targeting
(NCCT) program improves the responsiveness and utility
For DoD travelers requiring a virtual office, L-3 CS-East is
of ISR operations to enable real-time targeting and mis-
developing the Secure Mobile Environment – Portable
sion planning. NCCT was featured in the US Navy's
Electronic Device (SME-PED), a secure voice, data and
Trident Warrior Experiment/Demonstration – successfully
email wireless product with PDA functionality. SME-PED
Global Hawk UAV
networking space, aircraft, ships and ground ISR sensor
will enable the DoD and other US Government users to
platforms to provide target/threat detections, locations
have a classified-level communications device similar to
and identifications.
products that are commercially available. 15
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